Coal news and updates

Decision on next round of coal block auctions in a week

A decision on the next round of auction of coal blocks is expected to be taken next week. Originally 16 coal blocks were identified for this round, but another 4 to 8 mines can be added to the lot, said coal secretary Anil Swarup. He was talking to the media on the sidelines of the launch of new initiatives by Western Coalfields Limited (WCL).

Further details of the auction will be notified after the decision is taken, he said. On the earlier auctions, Swarup said the government has mopped up Rs 3.5 lakh crore from 66 coal blocks apart from achieving an indirect benefit to the tune of Rs 59,000 crore in the form of tariff reduction.

Power companies have to reverse bid for the blocks, with the lowest offer bagging the deal. This ensures that the tariff comes down, he said.

Swarup said the mop up has been much beyond the government's expectations. "There were no targets set for the revenue collections. All the government wanted was to establish a transparent system. Now the very mechanism has set an example for others," said Swarup.

Chairman of Coal Mining Planning and Development Institute (CMDPI) AK Deb recalled how he managed to complete the valuation of the mines before the auction at short notice. "I got up early in the morning and started working on the first day. Factors like net present value were used in the process," he said.

The government also plans to set up 19 coal washeries for which tenders will be issued soon. The norms on keeping the ash content in coal at 34% will have to be strictly followed, for which the coal washeries are needed, said Swarup.

Earlier, during the WCL function, a slew of new measures aimed at increasing production to 60 million tonnes a year by 2020 were launched. This included satellite based land information system and water management. A project to provide water from the mines in Kamptee to WCL's residential colony in Kanhan was also inaugurated.

Speaking on the production targets, the coal secretary said as against 450 million tonnes mined by Coal India Limited (CIL) in a year, it is planned to take it to a billion tonnes by 2020. He said, "It was indeed an ambitious target but that is how you grow."

Swarup said the country has enough coal to meet double the present demand. The government has adopted a planned approached. So far, plans for only 908 million tonnes have been firmed up, as and when it appears to be feasible planning for the remaining quantum will be taken up.

source: http://timesofindia.indiatimes.com